Justice Department Says Two Seattle-Area Men Allegedly
Help Customers Attempt To Evade Taxes

WASHINGTON, D.C. - The Justice Department today sued Glen Stoll, of Edmonds,
Washington, and Michael Stevens, of Everett, Washington, to bar an alleged tax
fraud scheme that uses sham trusts to help customers try to evade federal
income taxes. The lawsuit, filed in the U.S. District Court for the Western
District of Washington in Seattle, alleges that Stoll and Stevens are former
associates of John and Candace Sinclair, of Kirkland, Washington, against whom
the government filed a similar suit last month.

Today’s complaint alleges that the two men and their companies, which the
government also sued, sell a fraudulent “corporation sole” and “ministerial
trust” scheme, falsely telling customers that conducting their personal and
business activities through a so-called ministerial trust eliminates
obligations to file federal tax returns and pay federal tax. The complaint
alleges that the defendants market their program through a website and falsely
claim to be lawyers. The defendants also allegedly help customers transfer
their income to offshore bank accounts. According to the complaint, the
customers then repatriate the funds using credit cards connected to the
accounts but fail to report the funds as income on their tax returns.
Defendants allegedly charge customers at least $4,000 to participate in the
scheme.

“Law-abiding taxpayers deserve the assurance that their competitors and
neighbors are also paying what the law requires,” said Eileen J. O'Connor,
Assistant Attorney General for the Department of Justice's Tax Division.
“Stopping the promotion of tax scams and identifying and taking appropriate
action against their users are high priorities for the Tax Division.”

The suit also seeks an order directing the defendants to give the Justice
Department the names, mailing and e-mail addresses, Social Security numbers,
and telephone numbers of their customers.

Misuse of trusts tops the IRS’s list of “Dirty Dozen” tax scams. Information
about the “Dirty Dozen” is available at:
http://www.irs.gov/newsroom/article/0,,id=120803,00.html. Information about
corporation sole tax scams is available at
http://www.irs.gov/newsroom/article/0,,id=121566,00.html. More information
about the Justice Department’s lawsuit against the Sinclairs can be found at
http://www.usdoj.gov/tax/txdv05011.htm. More information about the Justice
Department's efforts against tax-scam promoters can be found at
http://www.usdoj.gov/tax/taxpress2005.htm. Information about the Justice
Department's Tax Division can be found at http://www.usdoj.gov/tax.